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Debt | 6 Months Ended
--- | ---
Jun. 30, 2024
Debt Disclosure [Abstract] |
Debt | 4. Debt Mortgage Loans, Net. As of June 30, 2024 and December 31, 2023, we had approximately $320.2 million and approximately $316.0 million of outstanding mortgage debt, respectively. The following table sets forth our mortgage debt obligations on our hotels.
| Balance Outstanding as of |  |  |  |  |  |  |  |  |  |
| June 30, |  |  | December 31, |  |  | Prepayment |  | Maturity |  | Amortization |  | Interest |
Property | 2024 |  |  | 2023 |  |  | Penalties |  | Date |  | Provisions |  | Rate |
The DeSoto (1) | $ | 29,748,229 |  |  | $ | 30,248,929 |  |  | Yes |  | 7/1/2026 |  | 25 years |  | 4.25% |
DoubleTree by Hilton Jacksonville Riverfront (2) |  | 31,405,915 |  |  |  | 31,749,695 |  |  | Yes |  | 7/11/2024 |  | 30 years |  | 4.88% |
DoubleTree by Hilton Laurel (3) |  | 10,000,000 |  |  |  | 10,000,000 |  |  | (3) |  | 5/6/2028 |  | (3) |  | 7.35% |
DoubleTree by Hilton Philadelphia Airport (4) |  | 35,915,488 |  |  |  | 38,915,488 |  |  | None |  | 4/29/2026 |  | (4) |  | SOFR plus 3.50% |
DoubleTree Resort by Hilton Hollywood Beach (5) |  | 50,964,894 |  |  |  | 51,495,662 |  |  | (5) |  | 10/1/2025 |  | 30 years |  | 4.913% |
Georgian Terrace (6) |  | 39,008,579 |  |  |  | 39,455,095 |  |  | (6) |  | 6/1/2025 |  | 30 years |  | 4.42% |
Hotel Alba Tampa, Tapestry Collection by Hilton (7) |  | 35,000,000 |  |  |  | 24,269,200 |  |  | (7) |  | 3/6/2029 |  | (7) |  | 8.49% |
Hotel Ballast Wilmington, Tapestry Collection by Hilton (8) |  | 30,267,935 |  |  |  | 30,755,374 |  |  | Yes |  | 1/1/2027 |  | 25 years |  | 4.25% |
Hyatt Centric Arlington (9) |  | 45,893,572 |  |  |  | 46,454,972 |  |  | Yes |  | 10/1/2028 |  | 30 years |  | 5.25% |
The Whitehall (10) | $ | 13,900,059 |  |  |  | 14,009,874 |  |  | None |  | 2/26/2028 |  | 25 years |  | PRIME plus 1.25% |
Total Mortgage Principal Balance | $ | 322,104,671 |  |  | $ | 317,354,289 |  |  |  |  |  |  |  |  |  |
Deferred financing costs, net | $ | (1,890,963 | ) |  |  | (1,407,979 | ) |  |  |  |  |  |  |  |  |
Unamortized premium on loan |  | 30,544 |  |  |  | 42,884 |  |  |  |  |  |  |  |  |  |
Total Mortgage Loans, Net | $ | 320,244,252 |  |  | $ | 315,989,194 |  |  |  |  |  |  |  |  |  |
(1) | The note amortizes on a 25-year schedule after an initial interest-only period of one year and is subject to a pre-payment penalty except for any pre-payments made within 120 days of the maturity date. See Note 13. Subsequent Events for additional information on this loan.
(2) | Prepayment can be made without penalty. See Note 13. Subsequent Events for additional information on this loan.
(3) | The note requires payments of interest only and cannot be prepaid until the last 4 months of the loan term.
(4) | The note requires payments of interest only. On May 3, 2024, we entered into an interest rate cap with a notional amount of $26.0 million with Webster Bank, N.A. The cap has a strike rate of 3.0%, is indexed to SOFR, and expires on May 1, 2026.
(5) | With limited exception, the note may not be prepaid prior to June 2025.
(6) | With limited exception, the note may not be prepaid prior to February 2025.
(7) | The note requires payments of interest only and cannot be prepaid until the last four months of the term.
(8) | The note amortizes on a 25-year schedule after an initial interest-only period of one year and is subject to a pre-payment penalty except for any pre-payments made within 120 days of the maturity date.
(9) | Following a 5-year lockout, the note can be prepaid with penalty in years 6-10 and without penalty during the final 4 months of the term.
(10) | The note bears a floating interest rate of New York Prime Rate plus 1.25%, with a floor of 7.50%.
As of June 30, 2024, we were in compliance with all debt covenants, current on all loan payments and not otherwise in default under any of our mortgage loans. Additionally, the mortgage on the Georgian Terrace and the DoubleTree Resort by Hilton Hollywood Beach mature in June 2025 and October 2025, respectively. We intend to refinance these mortgages, but may be required to reduce the level of indebtedness by an amount of up to $5.25 million on the refinance of the mortgage on the Georgian Terrace and up to $12.5 million for the mortgage on the DoubleTree Resort by Hilton Hollywood Beach based on current and anticipated financial performance of the properties and anticipated market conditions. Total future mortgage debt maturities for the remaining six and twelve-month periods, without respect to any extension of loan maturity or loan modification after June 30, 2024, were as follows:
For the remaining six months ended December 31, 2024 | $ | 34,365,494 |
December 31, 2025 |  | 92,446,009 |
December 31, 2026 |  | 94,504,458 |
December 31, 2027 |  | 1,757,220 |
December 31, 2028 |  | 64,031,490 |
December 31, 2029 |  | 35,000,000 |
Total future maturities | $ | 322,104,671 |
PPP Loans. The Operating Partnership and certain of its subsidiaries have received PPP Loans administered by the U.S. Small Business Administration pursuant to the CARES Act. Each PPP Loan had an initial term of two years, with the ability extend the loan to five years, if not forgiven, and carries an interest rate of 1.00%. Equal payments of principal and interest begin no later than 10 months following origination of the loan and are amortized over the remaining term of the loan. Pursuant to the terms of the CARES Act, the proceeds of each PPP Loan may be used for payroll costs, mortgage interest, rent or utility costs. The promissory note for each PPP Loan contains customary events of default relating to, among other things, payment defaults and breach of representations and warranties or of provisions of the relevant promissory note. Under the terms of the CARES Act, each borrower can apply for and be granted forgiveness for all or a portion of the PPP Loan. Such forgiveness will be determined, subject to limitations, based on the use of loan proceeds in accordance with the terms of the CARES Act. No assurance is provided that any borrower will obtain forgiveness under any relevant PPP Loan in whole or in part. On April 16, 2020, our Operating Partnership entered into a promissory note with Village Bank in connection with a PPP L oan and received proceeds of $333,500. The Company is required to make monthly payments of $18,000 through December 25, 2025 to extinguish the loan. On April 28, 2020, we entered into a promissory note and received proceeds of approximately $9.4 million under a PPP Loan from Fifth Third Bank, National Association. On December 9, 2022, the Company was notified it had received principal forgiveness in the amount of approximately $4.6 million and is required to make monthly payments of $56,809 through July 1, 2025 to extinguish the loan. On May 6, 2020, we entered into a second promissory note with Fifth Third Bank, National Association and received proceeds of $952,700 under a PPP Loan. On February 3, 2023, the Company was notified it had received principal forgiveness in the amount of approximately $268,309 and is required to make monthly payments of $13,402 through May 6, 2025 to extinguish the loan. At June 30, 2024 and December 31, 2023, the PPP loans had a cumulative balance of approximately $1.1 million and approximately $1.5 million, respectively.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481544/470-10-50-6 Reference 2: 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